Credit card companies require low minimum payments that impose significant interest costs on consumers choosing to pay the minimum. Recent legislation has required credit card companies to show on customer billing statements how much interest would be
paid and how long it would take to repay the current balance if only the minimum is paid. Behavioral economists would expect this legislation to:
Credit card companies require low minimum payments that impose significant interest costs
on consumers choosing to pay the minimum. Recent legislation has required credit card
companies to show on customer billing statements how much interest would be paid and how
long it would take to repay the current balance if only the minimum is paid. Behavioral
economists would expect this legislation to:
Answer: D
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Suppose the equilibrium rent in Denver is $1,050. A rent ceiling of $755 per month leads to
A) a surplus of apartments in Denver. B) a shortage of apartments in Denver. C) no change in the Denver apartment market. D) fair prices in the Denver market. E) compared to the situation at the equilibrium rent, a decrease in the quantity of apartments demanded and an increase in the quantity of apartments supplied.
Based on the following information, the value of the M1 measure of the money supply is ________ and the value of the M2 measure of the money supply is ________.AssetsBillions of DollarsCurrency20Demand deposits300Money market mutual funds800Traveler's checks10Savings deposits1,800Other checkable deposits200Small denomination time deposits1,100
A. $530 billion; $4,230 billion B. $330 billion; $4,230 billion C. $520 billion; $4,320 billion D. $530 billion; $3,700 billion
Assume that the price level is flexible both upward and downward and that the Fed's policy is to keep the price level from either rising or falling. If aggregate supply increases in the economy, the Fed:
A. will have to increase interest rates to keep the price level from falling. B. will have to reduce the money supply to keep the price level from rising. C. will have to increase the money supply to keep the price level from falling. D. can keep the price level stable without altering the money supply or interest rate.
If a Balanced Budget Amendment to the U.S. Constitution were passed, during economic prosperity, such an amendment would
A. have no impact on the economy. B. dampen those good times. C. cause those good times to be even better. D. throw the economy into a depression.